Credit Suisse Securities misrepresented the securities’
risks, leading the credit unions to believe there was little
chance of losing money when they bought $715 million worth of
them, the National Credit Union Administration said in a
complaint filed yesterday in federal court in Kansas City,
Kansas.

The securities were sold to U.S. Central Federal Credit
Union, Western Corporate Federal Credit Union and Southwest
Corporate Federal Credit Union. All three failed and resulting
losses are paid by a fund supported by assessments on all
federally insured credit unions, NCUA said in a statement.

Jack Grone, a spokesman for Credit Suisse in New York,
declined to comment on the lawsuit.

The agency said it has sued seven other investment banks
seeking to recoup losses from investments sold to credit unions.